If a Technological Advance Increases a Firm's Labor Productivity,we Would

question 54

Multiple Choice

If a technological advance increases a firm's labor productivity,we would expect the firm's:

• A) average total cost to rise.
• B) average total cost to fall.
• C) total cost to rise.
• D) average total cost to be unaffected.

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Definitions:

Finance Lease

A lease agreement where the lessee assumes both the risks and rewards of ownership of the asset, but legal title may not be transferred.

Acquires Title

The act of obtaining legal ownership of a property or asset.

Lessor

The party that rents or leases property to another party, known as the lessee.

Payment Terms

The specific conditions under which a seller will complete a sale, typically including the amount due, discount terms, and the time frame for payment.